Indian Economy
Inclusive Growth and Employment
GS Paper III
Inclusive Growth and Employment — Quick Revision
One-page UPSC revision of inclusive growth, inequality measures, poverty committees and MPI, unemployment types, PLFS approaches and ratios, and labour codes.
SyllabusGS III · Inclusive growth and issues arising from it
A last-week revision sheet for inclusive growth and employment. Most questions turn on a definition or a denominator — learn them exactly.
Inequality and Poverty
| Concept | Key point |
|---|---|
| Lorenz curve | Cumulative income share vs cumulative population share; farther from the diagonal = more inequality |
| Gini coefficient | 0 = perfect equality; 1 = perfect inequality |
| Kuznets curve | Inverted U: inequality rises, then falls, with income |
| Tendulkar Committee (2009) | Poverty 21.9% in 2011-12 |
| Rangarajan Committee (2014) | Poverty 29.5% in 2011-12 |
| National MPI (NITI Aayog) | Health, education, living standards; 12 indicators; 24.85% (2015-16) → 14.96% (2019-21) |
Types of Unemployment
| Type | Signature |
|---|---|
| Disguised | Marginal productivity zero; family farms |
| Seasonal | Idle in the off-season |
| Structural | Skills or location mismatch; long-term |
| Frictional | Between jobs; short-term |
| Cyclical | Business-cycle downturn |
| Open | Actively seeking, no work |
Measurement
| Approach | Reference period | Unemployment rate |
|---|---|---|
| Usual status (UPSS) | 365 days; subsidiary work of 30+ days counts | Lowest |
| Current Weekly Status | 7 days; one hour of work on any day counts | Middle |
| Current Daily Status | Each day (half-day units) of 7 days | Highest |
| Ratio | Formula |
|---|---|
| LFPR | Labour force ÷ population |
| WPR | Employed ÷ population |
| UR | Unemployed ÷ labour force |
PLFS: launched by NSO in April 2017.
Labour and Livelihoods
| Item | Fact |
|---|---|
| Labour codes | Wages (2019); Industrial Relations, Social Security, OSH (2020); 29 laws consolidated |
| Constitutional list | Labour — Concurrent List |
| Gig workers | Recognised in the Code on Social Security, 2020 |
| NCEUS | Arjun Sengupta; 2007 report; 77% below ₹20 a day (2004-05) |
| MGNREGA (2005 Act) | 100 days per rural household; work within 15 days or allowance; one-third women |
| e-Shram | August 2021; database of unorganised workers |
| DAY-NRLM | 2011; women’s SHGs |
High-yield facts
- UR is divided by the labour force; LFPR and WPR are divided by the population.
- CDS gives the highest unemployment rate; usual status gives the lowest.
- MPI uses NFHS data and measures deprivations, not income.
- Eleventh Plan: Towards Faster and More Inclusive Growth.
Traps
- A falling unemployment rate can reflect people leaving the labour force, not new jobs.
- Disguised unemployment is hidden within apparent employment; seasonal unemployment is open in the off-season.
- Verify the current rural employment guarantee statute before quoting entitlements.
Related Topics
- Inclusive Growth and Unemployment
- Inclusive Growth and Employment — practice questions
- Poverty and Developmental Issues
- All quick revision sheets
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